New Zealand Banking
 New Zealand banks generally welcome new customers, and opening an account is quick and simple - due, in part, to the less stringent money laundering rules in New Zealand.
Opening a New Zealand Bank Account
The documents you will generally need to open an account with a New Zealand bank are
- photo ID (such as your passport) and
- proof of your address (such as a utility bill).
You can also set up a New Zealand bank account from the UK. You will be asked for your IRD number, but can supply it later if necessary - although any interest you earn will be taxed at a very high "no notification" rate.
Before you leave the UK...
- Make sure you let your UK bank know your new address before
you leave the UK; they will generally be happy to send your statements
to New Zealand at no extra cost.
- Ask your bank for the
forms you need to fill in to have interest paid to your accounts
without tax being automatically deducted.
- If possible, set up and test internet and/or phone banking before you leave.
- Keep
at least one account open in the UK - it can come in handy, and it is
hard to open an account in the UK once you have been out of the country
for a while.
- If you think you may have lost track of any accounts, you may like to take a look at the Lost Accounts tracing service - it is free, and you can do it all online.
Interest Rates and Bank Charges
New Zealand banks offer higher interest rates than their UK counterparts on deposits, but mortgages and other lending rates are a couple of percent higher than in the UK. Most New Zealand banks charge fees on current accounts, some of them flat fees and others per-transaction fees – but banks will often give you discounts on fees (or even most transactions free) for receiving all your statements online or maintaining a specified minimum balance in your account. It is well worth periodically asking your bank whether there is a more appropriate account for you. Be especially aware of fees if you are setting up a business account, as they vary widely.
Online Banking
Online banking is widely available, but unfortunately generally not as secure as in the UK. While fraud is comparatively rare, keep your anti-virus and spy ware software up to date, avoid doing your online banking on public computers, and never supply your passwords to anyone.
Money Machines
Money machines are widely available at banks, along main shopping streets and in shopping malls. You may be charged a fee of around $0.50 - $1 for using a card from one bank at another's ATM.
Eftpos
Eftpos is the widely available debit card system, which you can use almost anywhere. Some retailers also allow you to withdraw cash on Eftpos with a purchase, and there is generally no minimum purchase. A pin number is used rather than a signature.
New Zealand Government Bank Deposit Guarantee
New Zealand instituted a government-backed bank deposit guarantee scheme to provide some certainty to depositors in October 2008. Clients from approved banks are covered for one million dollars per depositor per institution. For approved non-bank deposit takers (such as finance companies) the guarantee only covers New Zealand citizens and New Zealand tax residents.
The guarantee, formally known as the Crown Retail Deposit Guarantee Scheme, initially ran for two years intil October 2010, but was extended to December 31 2011 with the following changes:
- Guarantees have been reduced to a maximum of $500,000 per depositor per
institution for bank deposits and a maximum $250,000 per depositor per
institution for non-bank deposits with participating institutions (down
from $1 million per depositor per institution).
- Institutions will need to obtain a rating of BB or higher to be
eligible to participate in the extended scheme.
- Collective investment schemes (such as Portfolio Investment Entities
[PIEs] and unit trusts) will no longer be
covered.
Non-New Zealand residents are still covered for bank deposits under the
extension, but as with the original scheme deposits with non-bank
institutions (including finance companies) are only covered for New
Zealand citizens and tax residents.
For more information, check the New Zealand Treasury website.
Which bank is best?
Most New Zealand banks have migrant banking services, which specialise in helping new residents to get their banking all sorted out. Based on our own experience and recommendations we have received from clients, there are two in particular that we recommend; Westpac and Kiwibank.
In Conclusion
New Zealand banks offer a wide range of services although they only tend to offer their own products which may not be the best in the market place or the most appropriate for you. As we are not tied to any single institution we can offer a range of solutions for foreign exchange, mortgages, insurance, investments or pensions; so get in touch with us and we can discuss your requirements in more detail.
Broadbase International will work with you every step of the way to help you make a confident start to your new life in New Zealand. Please contact us if you have any questions about the financial side of life in New Zealand, and don't forget to order your free copy of our comprehensive New Zealand Guide.
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On Your Way 
